THE IMPACT OF ADVERTISING REVENUE ON THE SUSTENANCE OF ELECTRONIC MEDIA IN NIGERIA

(A CASE STUDY OF N.T.A. ENUGU)

ABSTRACT

 

This study “The Impact of Advertising Revenue on the Media”, was aimed at finding out what influence the funds advertising have on the electronic media in Nigeria. various segments of the media industry outdoor, TV, newspaper, magazines, advertisers and advertising bodies in Enugu were studied. Four hypotheses were formulated in the research work which were tested to determine revenue impacts on the management of the media in Nigeria. The data for the study were collected through the use of research questionnaire administered to six and only selected workers in the media house in Enugu were used. Finding percentages. Further more, public relation managers and other managers in various forms whose firms advertises their corporate reputation (images) were enjoined to grant advertising research to such media. A greater percentage of the funds available in the media in Nigeria emanate from the advertising be it government or private owned media. The operational efficiency of any electronic media is mainly dependent, among other things on the fund available to it. Advertisers in various media organization have control over audience and over the electronic media. Advertising revenue has the same effect o the consumer and the electronic media. The researcher recommends that media managers should take the direct marketing approach to attract advertisers in whose hand is the substance of their organization. It was also recommended that electronic media management in Nigeria should shift the importance they attached themselves to advertisers who patronize them. This will further encourage the advertisers to remain with the medium.

CHAPTER ONE

INTRODUCTION                                                   1

• Background of the Study 1
• Statement of the Research Problem 7
• Objectives of the Study 8
• Significance of the Study 9
• Research Questions 10
• Research Hypothesis 10
• Theoretical Framework 11
• Scope of the Study 12
• Limitation of the Study 12
• Definition of Terms 13

Reference                                                       15

 

CHAPTER TWO

LITERATURE REVIEW                                           16

• Sources of Literature 16
• Review of Relevant Literature 16
• Summary of Literature 40

Reference                                                       46

 

CHAPTER THREE

METHODOLOGY                                                    47

• Research Design 47
• Area of Study 47
• Research Population 48
• Research Sample 49
• Sampling Techniques 49
• Instrument of Data Collection 50
• Method of Data Collection 51
• Method of Data Analysis 52
• Expected Results 52

 

CHAPTER FOUR

PRESENTATION AND INTERPRETATION

OF FINDINGS                                                              54

• Data Presentation and Analysis 54
• Analysis of Research Questions/Hypothesis 74
• Discussion of Result 80

 

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

FOR FURTHER STUDY                                           82

• Summary 82
• Conclusion 83
• Recommendation 83

 

Bibliography                                                    85

Appendix I                                                      86

Appendix II                                                     87

LIST OF TABLES

 

Table 1:  Age distribution                                        54

Table 2:  Sex distribution                                        55

Table 3:  Marital status                                           56

Table 4:  Educational level                                       56

Table 5:  Occupational level                                     57

Table 6:  Table six asked if the media can exist

with our revenues from the advertising        57

Table 7:  If Advertisers control financial aspect

of media                                                  58

Table 8:  To know if the greater percentage of funds

for the media causes from the advertising    60

Table 9:  Without the advertising the media has no

other sources of income                            61

Table 10: If advertisers control the media via what

they advertises                                                62

Table 11: Revenue maximization is the utmost aim

to advertisers                                           65

Table 12: Revenue generation determines the

advertisers action or inaction                      66

Table 13: Publishers, media operators, governments

have no control of media as advertisers do   66

Table 14: The control of the media is total in the hands

of operators, owners and government         67

Table 15: Is the sponsorship or electronic media

different from its control                            68

Table 16: Very other source of revenue open to media

is significant                                             69

Table 17: Media depends on advert                                  69

Table 18: Quality of staff or volume of equipment do

not control the media                                70

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Advertising practices in Nigeria have not been handled with seriousness, which it deserves.  As a result of this earlier growth neglect, reliably recorded chronicling of advertisement in Nigeria.

According to Molokwu (2000), what exists are only scantly patches of information put together by one or two organizations.

Advertising emanates from the latin word “advertise” which means to drawn attention to one thing or the other. A look at the biblical account of certain creation and the subsequent fall of man (Gen:1-6) “Mr” serpent who promoted the goodness of the “forbidden fruit” to Adam and Eve.

The biblical part of advertising ethics forbids telling lies. The said any day you eat of it, your eyes will be opened and you will know good and evil, so the woman took of the fruit and eat, she also kept for her husband from all indication the serpent used our modern step flow of information concept when he went through Eve. From the account, Eve was the first human being used to advertise a product. Coming to Nigeria scenario, the earliest crude advertising formed in Nigeria includes the town criers clearly morning or night gong) which alerts the villagers. Another form of advertising was the use of bells in the marked square, in all effort to “draw attention” to advertised product.

The live-irontin newspaper introduced by Henry Townsend in the late 19^th century (1819) saw advertising metamorphosiced from its crude form in the century to an organized activity. It provided a form for tradesmen who hitherto organized the product of art impression and printed posters street signs, stage events and forms of sales support.

Molokwu (20000) traced the first formal advertisement in Nigeria which used the forum of information of stripping movement and movement and cargo to the iwe-irohin. Later the growth of printing led to the emergency of well printed black and white posters which eventually gave birth to the organized out door advertising as we know today. As time went on, median photograph was discovered and its subsequent advert in Nigeria brightened tremendously the fall of advertising in Nigeria just as cinematography equally emerged on the scene.

The Royal Niger Company (RNC) played fore runner role in the development of advertising in Nigeria, this Royal Nigeria company metamorphosized into United African Company (UAC) it was this (UAC) that formed the West African publicity (WAP) limited the first advertising agency in Nigeria as an affiliate of the United African Company (UAC). The West African Publicity (WAP) was incorporated in London on August 13, 1928. The success of (WAP) led to the rapid growth and to its metamorphosis into Zintas West African Limited.

Earlier in 1959, WAP created out its body a fall pledged out-door services company which was indigenized in 1974. No doubts, the introduction of Radio and television in 1932 and 1960 respectively in Nigeria, coupled with the ever increasing population of Cinema brought the full growth of advertising in the country. Generally, advertising has two major aspect, it seek to inform consumers of the characteristics of the available products and it seeks to influence consumers by altering their demand. The first aspect of informative advertising plays an important role in the efficient operation of any free market system, the second aspect is one through which firms seek to control the market rather than being controlled by it.

Advertising influences consumers that explains why coca-cola (a soft drink company) will never stop advertising or it would surely loose sales to pepsi cola company. It will be noted that advertising shifts demands among very similar products, eg. Benson and Hedges/LDM Cigarette, Close-up/ madness, St. Michael, Bread, Ofoma bread etc, as Charles Okigbo in (Nwosu and Ekwelie, (1996-1999) observed that advertising has so many potentialities as for any given product is concerned. Its traditional functions are to inform, educates, persuade and ultimately move to act an consistent with the promotional objectives of the company.

Advertising is regarded as a serious and big business with a turnover N650 million in Nigeria in 1991. But no matter how big, have influential advertising tend to be, it would be reduced to nothingness, if there is no medium through which this non-personal presentation and protraction of ideas, good and services by an identified sponsors get the target audience. There lies the symbolic relationship between advertising and electronic media, radio, television and e-mail.

Advertising message area exposed to the public through any or a combination of the above media where we are discussion advertising efficiency that is:

• The advertising cost per larger buyers reached by a medium.
• Percentage of people who saw and read advertising.
• Consumer opinion on the advert content and its effectiveness.
• Number of people that advert stimulated etc. or whether we are telling of “media efficiency” that its reaching the maximum possible audience for the smallest possible cost (Adirika, Ebue and Nnolim 1996).
• Before and after measures of attitude to wards the product.

Meanwhile, here is one common word in the concepts: advert efficiency media efficiency. These efficiencies presupposes measurable index-cost indicate price, a noun meaning account of money for which the media space or airtime is to be sold or bought. It is the sun total of the price collected from advertising by electronic media operators in Nigeria for any year. This annual price form the advertising revenue for the electronic media in the country.

The advertising revenue have tremendous impact and influence on the electronic media in the country, for instance it be continually, advancing both the information and technology. While others have little or no influence on some of the electronic media in the country. Coming to individual media organization some go out of business soon after their commencement, while other advertisers have little or no influence on the additional policies of the electronic media all as a result of advertising revenue on the electronic media in Nigeria. The radio Nigeria Enugu metropolis is no longer as it used to be while AIT, FM is currently settling the space in Nigeria business nationwide; all courtesy of advertising revenue.

 

1.2  STATEMENT OF THE RESEARCH PROBLEM

Advertising revenue has played a vital role in the maintenance of electronic media in Nigeria. it determines which of them will not, the question is what actually is the impact(s) (if any) of advertising revenue on the management of media in Nigeria.

The purpose of this research work is therefore to find out what the impact advertising revenue has on the management of electronic media in Nigeria, that is what role does the advertising revenue play in the sustenance of media house in Nigeria,

 

1.3  OBJECTIVES OF THE STUDY

Advertising revenue has played a vital role in the maintenance of electronic media. This study has the following objectives.

1. To find out if advertising revenue has played any role in the existence of electronic media in Nigeria.
2. To determine the nature of the impact advertising revenue has on the management of electronic media in Nigeria.
3. To find out if advertising revenue in any way, even remotely controls the electronic media management in Nigeria be it private or public owned media or otherwise.
4. To find out if the advertising has anything to do with establishment of six various advertising bodies in Nigeria, such as programmes, engineering, commercial, administrator, finance, news and current affairs department.
5. To what extent these bodies interfere in the management of electronic media in Nigeria.

 

1.4  SIGNIFICANCE OF THE STUDY

This study will benefit various categories of business firms in the Nigeria, especially those that have one thing or more to do with the advertisement of their product or services. They will learn the time impacts which the revenue accruing from their organization have on the management of media through which their advert message are exposed to the large audience. This study will also ascertain extent advert revenue influence the management of the media in Nigeria.

 

1.5  RESEARCH QUESTIONS

The researcher asked the under listed questions:

• Does the greater percentage of fund available to the media emanate from advertising?
• Does the amount of revenue available to the media house determine their operational efficiency?
• Does the advertising revenue have the same effect on the consumers and media management?
• Does advertisers in various media organization have control the audience and the media.

 

1.6  RESEARCH HYPOTHESES

Ho:  The greater percentage of fund available to the media does not emanate from advertising.

H₁:  The greater percentage of fund available to the media emanates from advertising.

Ho:  The amount of revenue available to the media house does not determine their operational efficiency.

H₂:  The amount of revenue available to the media house determines their operational efficiency.

Ho:  The advertising revenue does not have the same effect on the consumers and media management.

H₃:  The advertising revenue have the same effect on the consumers and media management.

Ho:  Advertisers in various media organization does not have control over the audience and the media.

H₄:  Advertisers in various media organization have control over the audience and the media.

 

1.7  THEORETICAL FRAMEWORK

Through we have several other communication theories that have relevance to the present research on “the impact of advertising revenue on management of the media in Nigeria”.

However, agenda setting uses and gratification and the two step flow theories are same theories that seem to have much or relevance to this study.

1.8  SCOPE OF THE STUDY

This study is centered on the impact of advertising revenue on the sustenance of electronic media in Nigeria – A study of NTA, Enugu.

The researcher tries to study the impact advertising revenue creates to the media and by so doing the residents of Enugu metropolis were used as a sampled study.

 

1.9  LIMITATION OF THE STUDY

There were certain factors that hindered certain efforts of the researchers. These are as follows:

Inadequate means of transportation was one of the factors, because certain areas during this research work where located to remote areas that were not motorable. Therefore researcher found it difficult to visit some organization in these area as.

Financial constraints were also another factor. There were problem of huge amount of money induced in the research study. Other academic works were also problems during this research work.

Questionnaire distributions were also another problem. Some of the questionnaires we rejected in some areas by the respondents due to the fear of information disclosure on the other hand, some of the questionnaires were wrongly filled, while some got lost in transit.

 

1.10 DEFINITION OF TERMS

Conceptual

• Impact – A strong impression known to the public by advertising.
• Revenue – Money which comes to a person, etc. from any source of gain.
• Management – The control and making of decision in a business of similar organization.
• Media – A means, especially radio or television by which new products area made known to the public.
• Advertising – A form of communication through the media about product, services ideas, personal sponsor.

 

Operational

• Impact – In this study it refers to reference of which effect of an advertising revenue has on the sustenance of the media in Nigeria.
• Revenue – In this study it is the sum total of funds available to the media, every media researchers media weather equipment skills informing educating and entertaining the public.
• Media – Radio to the medium or channel such as television, radio, computer, etc.
• Advertising – A form of communication through an identified sponsor. It is also professional planning creating, packaging and policy advertisement in the media.

REFERENCES

Molokwu Bel J.: Advertising in History. The Nigerian Scene (APCON 20000)

Okunna Chinyere S.: Teaching Mass Communication, A Multi Dimension Approach, 2002.

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